New body shop adds more than one million square-feet to current footprint

Facility will build future products, beginning in 2013

Body shop to include state-of-the-art technology

Company’s total investment in U.S. facilities grows to nearly $3.5 billion since June 2009

Chrysler Group LLC Sterling Heights Assembly Plant

October 18, 2011 , Auburn Hills, Mich. –Chrysler Group LLC announced today that it will invest $165 million to add a new one million square-foot body shop to its Sterling Heights (Mich.) Assembly Plant. This follows an announcement in December 2010 that the Company would invest nearly $850 million in a new paint shop for the plant and brings Chrysler Group’s total investment in its U.S. facilities to nearly $3.5 billion since June 2009.

“Today marks another milestone in the rags to riches story of the Sterling Heights Assembly Plant. A plant that was slated to close nearly two years ago will now be a state-of-the-art facility that will play an integral role in the success of this company by building the next generation of all-new vehicles.”

The investment includes the construction of the new body shop as well as the installation of equipment and conveyors that will be some of the most advanced in the industry.

In December 2010, Chrysler Group announced that it would invest nearly $850 million in the construction of an all-new, state-of-the-art 425,000 square-foot paint shop. In addition, some of the $850 million will be invested in the local stamping facilities in Warren and Sterling Heights.

“Last year, Chrysler made the decision to continue operating the Sterling Heights Assembly Plant indefinitely, maintaining good manufacturing jobs in Michigan and securing the future for more than 1,200 employees. Today, the plant is thriving with 900 new employees and additional investment that recognizes the commitment and dedication of this highly skilled workforce toward building a successful Chrysler Group.”

-General Holiefield,
Vice President, UAW/Chrysler Department

Chrysler Group LLC Sterling Heights Assembly Plant

Since June 2009, Chrysler Group has invested nearly $3.5 billion in its U.S. facilities and has made significant progress toward building a successful enterprise, including:

reporting an operating profit of $507 million in the second quarter of 2011;

reporting the 18th-consecutive month of year-over-year sales gains in September;

confirming a $114 million investment to repurpose about one-fifth or nearly 400,000-square feet of the Trenton North Engine Plant for the production of core components for the Pentastar engine produced at Trenton South;

investing nearly $1.3 billion into the Company’s existing transmission manufacturing facilities in Kokomo, Ind., to accommodate production of a new advanced front-wheel drive automatic transmission; increase capacity and support production of the World Engine and improve processes for the 62TE transmission program; and accommodate future production of a new highly fuel-efficient eight-speed automatic transmission;

About the Sterling Heights Assembly Plant

The Sterling Heights Assembly Plant was built in 1953 as a jet engine plant and was operated by the Army as the Michigan Ordinance Missile Plant with Chrysler serving as contractor building Redstone and Jupiter missiles. It was converted to an automobile plant in 1980 by Volkswagen and purchased by Chrysler Corporation in 1983.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep®, Dodge, Ram, SRT, Fiat and Mopar vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

August 23, 2011 , Auburn Hills, Mich. –Chrysler Group LLC announced today that it is prepared to invest $72 million in its Toledo Machining Plant in Perrysburg, Ohio, to produce new generation front-wheel and rear-wheel drive torque converters and steering columns, subject to the completion of incentive negotiations and agreements with the State of Ohio. As part of the investment, 640 hourly and salaried jobs will be retained.

“We welcome this investment in Toledo Machining as it is an acknowledgement of the high quality components that have been produced by our skilled workforce for many years. Being able to bring new technology to this facility secures its long-term future. We are also appreciative of the support we have received from the State of Ohio in providing the incentives necessary to make this investment possible.”

-Scott Garberding
Senior Vice President and Head of Manufacturing
Chrysler Group LLC

The investment would fund the installation of new equipment and special tooling to modernize and enhance the plant’s capability. Work on the plant is expected to begin late third quarter 2011 and be completed in the first quarter of 2013.

Toledo Machining Plant

“We’re very pleased that Chrysler is making the decision to invest in the Toledo Machining Plant and the skilled workforce there,” said General Holiefield, Vice President and Director, UAW Chrysler Department. “This will help preserve and enhance jobs in the area and give a greater measure of security to our members and their families well into the future.”

The plant also produces torque converters, a component that allows the transmission to shift gears in an automatic transmission, for Kokomo Transmission (Ind.), Indiana Transmission I and II (Kokomo, Ind.), Sterling Heights, Toluca and London, England.

Toledo Machining Plant

Since June 2009, Chrysler Group has invested nearly $3.2 billion in its U.S. facilities and has made significant progress toward building a successful enterprise, including:

reporting a net profit of $116 million in the first quarter of 2011;

reporting the 16th-consecutive month of year-over-year sales gains in July;

confirming a $114 million investment to repurpose about one-fifth or nearly 400,000-square feet of the Trenton North Engine Plant for the production of core components for the Pentastar engine produced at Trenton South;

investing nearly $1.3 billion into the Company’s existing transmission manufacturing facilities in Kokomo, Ind., to accommodate production of a new advanced front-wheel drive automatic transmission; increase capacity and support production of the World Engine and improve processes for the 62TE transmission program; and accommodate future production of a new highly fuel-efficient eight-speed automatic transmission;

announcing a $600 million investment in its Belvidere Assembly Plant;

confirming an investment of $850 million in its Sterling Heights Assembly Plant and surrounding stamping facilities;

planning an investment of $150 million in its GEMA (Dundee, Mich.) facility;

announcing an investment of $27.2 million USD in its Etobicoke Casting Plant (Toronto) to produce front and rear crossmembers for future Chrysler vehicles starting in the third quarter 2011;

announcing in December 2009 that it will invest $179 million to launch production of the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) at the company’s Global Engine Manufacturing Alliance (GEMA) plant in Dundee, Mich., creating more than 150 new Chrysler jobs;

adding a second shift of production – or nearly 1,100 jobs – at its Jefferson North Assembly Plant in May 2010;

adding nearly 900 jobs on a second shift at its Sterling Heights Assembly Plant in February 2011;

About Toledo Machining

Construction of the Toledo Machining facility began in 1964 with production starting in 1966. The plant expanded in 1969, adding 226,000 square-feet, increasing its overall footprint to more than 1.2 million square-feet. Because the plant produces several products specified as vehicle safety items, Toledo Machining requires precision machining operations to meet high quality standards.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep®, Dodge, Ram, Mopar® and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat’s complementary technology – from a company whose heritage dates back to 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

Check out the video below to see more about the Toledo investment and to hear the thoughts of Ohio Governor John Kasich. As always, click on any of the images in the post to see more photos of Chrysler Dodge Jeep Ram Vehicles. Thanks again for checking out Chrysler Catchall!

May 25, 2011 12:13 AM- Mike Driehorst- It’s a day 23 months in the making, six years ahead of schedule, and a day during which Chrysler Group CEO Sergio Marchionne spoke both praise and caution.

Sergio Marchionne announcing Chrysler's Pay Back

And, the highlight transpired at 10:13 a.m. when Marchionne received confirmation from Citigroup that company’s wire and bank transfer of payments to the U.S., Canada and Ontario governments were received and Chrysler Group’s $6.7 billion loan was paid in full, with interest.

Marchionne spoke to Chrysler Group employees at the company’s headquarters at noon (above), and then headed to the Sterling Heights (MI) Assembly Plant for the 2 p.m. public portion of what he called the company’s “Independence Day.”

Sergio Marchionne with Ron A. Bloom and Brian Deese

He was joined there by Assistant to President Obama for Manufacturing Policy Ron Bloom, and Vice President and Director, UAW Chrysler Department General Holiefield. Senior Vice President and Head of Manufacturing Scott Garberding made opening remarks.

During his comments, Marchionne said the “joy” of June 10, 2009, when the loan were made, “was conditioned by the sense of responsibility we all shared.

Sergio Marchionne with General Holiefield and Bill Parker

“Not just for the privilege we had been given of helping get an American icon back on its feet, but more importantly for our moral obligation to justify the support that American and Canadian taxpayers had given us.

“We knew we had to live up to the expectations of those who had made sacrifices on our behalf.”

As he has done so in the past, Marchionne cautioned about celebrating too much:

Sergio Marchionne with Tony Al-Abawi, SHAP Team Leader

“Today is a major milestone for Chrysler Group, but our work is by no means finished….

“Repayment of the government loans closes an important chapter in our history, but we still have a great deal left to accomplish before regaining our rightful place in the automotive landscape.”

Sergio Marchionne and others tour SHAP

ChryslerPayback facts

Chrysler Group made final payments Tuesday of $7.6 billion for the outstanding loans from U.S. and Canadian taxpayers (via their respective governments).

Payments consisted of $5.9 billion to the U.S. Treasury and $1.7 billion to Export Development Canada

In total, Chrysler Group paid U.S. Treasury $6.5 billion and the Export Development Canada $2.0 billion, including interest and additional consideration

Total loan pay off was $6.7 billion plus $1.8 billion of interest and other considerations. That’s a loan + interest totalling $8.5 billion.

U.S. and Canada governments made $1.8 billion on the deal

Paid in full more than six years ahead of payment schedule

Loans by U.S. and Canadian governments combined with strategic alliance with Fiat leads to:

16 all-new or significantly refreshed vehicles currently in dealerships;

more than $3 billion in facility upgrades; and

increased employment with the hiring of 6,000 Chrysler Group employees

The new financing will save Chrysler Group an estimated $350 million a year in interest expenses.

In June 2009, Chrysler Group borrowed $5.1 billion from the U.S. Treasury and $1.6 billion from Export Development Canada.

$2.6 billion from the original loan facilities was undrawn and the facilities will be cancelled